HCSG still stuck within tight trading range
Healthcare Services Group Inc. (HCSG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HCSG finished Thursday at 21.97 gaining $1.46 (7.12%), outperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HCSG as at Mar 26, 2020):
Thursday's trading range has been $1.92 (9.27%), that's slightly below the last trading month's daily average range of $2.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for HCSG. Prices continued to consolidate within a tight trading range between 19.38 and 23.58 where it has been caught now for the whole last trading week.
After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, HCSG actually lost -10.83% on the following trading day.
Prices are trading close to the key technical resistance level at 23.50 (R1). After having been unable to move lower than 20.28 in the previous session, the market found buyers again around the same price level today at 20.15.
Though Healthcare Services is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 23.36 where further buy stops might get triggered.